‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Surpasses $1 Billion in Awards to Whistleblowers with Two Awards Totaling $114 Million
The Securities and Exchange Commission today announced awards of approximately $110 million and $4 million to two whistleblowers whose information and assistance led to successful SEC and related actions. With these awards, the SEC’s whistleblower program has now paid more than $1 billion in awards to 207 whistleblowers, including over $500 million in fiscal year […]
Former SEC Complex Financial Instruments Unit Chief Joins Skadden
Skadden is pleased to announce that Daniel Michael, who recently stepped down as chief of the Complex Financial Instruments Unit of the Securities and Exchange Commission’s Division of Enforcement, is joining Skadden as a partner. Mr. Michael, who will be based in our New York office, will advise clients on SEC enforcement and regulatory matters […]
SEC is short staffed, needs more help to police crypto, China-linked firms, Gensler says
Chairman Gary Gensler said Wednesday that the SEC is trying to juggle an unprecedented list of financial challenges with a smaller staff. “We are short staffed,” Gensler told CNBC’s “Squawk on the Street.” “It might sound odd to say that at an agency with 4,400 remarkable, dedicated staff working remotely during this challenging pandemic. But […]
Why Coinbase Will Lose Its Battle with the SEC | LinkedIn
Though Coinbase has fired the first salvo with its Blog and Twitter barrages, the SEC will undoubtedly respond with its own thunderous bombardment of devastating canon and ordinance – in the form of a hefty and far-reaching enforcement action. And just like other SEC forays into crypto-enforcement, when the gunsmoke settles, the SEC will be […]
Four is the Loneliest Number: How strategic rounding of EPS results may predict aggressive financial reporting
While the occurrence of quadrophobia in a company may represent legitimate accounting discretion and may not necessarily indicate any potential violations of accounting standards or efforts to manage earnings, the study took a deeper look to determine, if management practiced strategic EPS rounding, would they be more likely to engage in other forms of problematic […]
Key Takeaways From a Second Summer Blitzkrieg of SEC Cybersecurity Enforcement | LinkedIn
The SEC just fired its second summer cybersecurity enforcement salvo in the span of two weeks, turning its enforcement torrent from cyber-related disclosure failures at public companies, to cybersecurity failures at SEC-registered financial firms. In its first salvo, fired on August 16, 2021, the SEC went ballistic. Without alleging fraud, without charging any individuals and, in […]
Coinbase Gets Wells Notice From the SEC on Lend Product – Bloomberg
Coinbase Global Inc. was warned by the Securities and Exchange Commission against launching a product that would allow consumers to earn interest on their crypto holdings. The U.S.’s biggest cryptocurrency exchange said it received a Wells notice saying the agency will bring an enforcement action if the company goes ahead with its Lend product. Coinbase […]
Regulatory Scrutiny of ESG Greenwashing Is Intensifying – Bloomberg
Pressure is increasing on managers of ESG-labeled investment funds to show they’re being truthful with customers about what they’re selling. The heat was really turned up last week when the U.S. Securities and Exchange Commission and BaFin, Germany’s financial regulator, initiated a probe into allegations that Deutsche Bank AG’s DWS Group asset-management arm has been […]
SEC Charges The Kraft Heinz Company and Two Former Executives for Engaging in Years-Long Accounting Scheme
The Securities and Exchange Commission today charged The Kraft Heinz Company with engaging in a long-running expense management scheme that resulted in the restatement of several years of financial reporting. The SEC also charged Kraft’s former Chief Operating Officer Eduardo Pelleissone and its former Chief Procurement Officer Klaus Hofmann for their misconduct related to the […]
Law Firms Respond to Recent Lawsuits Targeting SPACs | Arnold & Porter
On August 30, 2021, more than 55 leading law firms, including Arnold & Porter, took the unusual step of issuing a collective Statement in response to a recent set of lawsuits that challenge the legality of special purpose acquisition companies (SPACs) and allege that SPACs should be considered investment companies under the Investment Company Act of […]